Zijin Mining Group (HKG:2899) has announced that its wholly owned subsidiary, Zijin Gold (HKG:2259), has signed agreements to acquire controlling power in Chifeng Jilong Gold Mining (HKG:6693).
The deal involves purchasing 242 million A shares from shareholders Li Jinyang and Zhejiang Hanfeng for RMB10 billion ($2.1 billion), and subscribing to 311 million new H shares for HKD9.386 billion ($1.8 billion).
Once the deal is complete, Zijin Mining and its subsidiaries will hold about 25.85% of Chifeng Gold’s share capital, giving Zijin controlling power, with Chifeng’s financials consolidated into Zijin’s group accounts.
The transaction was approved by Zijin’s board and classified as a disclosable transaction under Hong Kong Listing Rules, requiring public announcement but not shareholder approval.
Completion of the transaction remains subject to regulatory reviews and other conditions.
Chifeng Gold was founded in 1998 and operates six gold mines and one polymetallic mine across China, Laos, and Ghana. It holds significant reserves of gold, copper, zinc, molybdenum, and rare earth elements.
In 2025, Chifeng produced 14.51 tonnes of gold and reported revenues of RMB12.6 billion, with net profit to shareholders at RMB3.08 billion.
Once the share transfer and H share issuance are complete, Zijin will nominate a majority of Chifeng’s board members, cementing its control of the company.
This deal comes just two months after Zijin entered an agreement to acquire Allied Gold (TSX:AAUC), as reported by Mining.com.au for C$5.5 billion ($5.8 billion).
Write to Amy Rotman at Mining.com.au
Images: Chifeng Gold
